By Jim Utter
Director of Journalism
Mister Car Wash, the nation’s largest car wash brand, reported better-than-expected financial results for the fourth quarter and year ended Dec. 31, 2024, and expects steady growth in 2025.
Headquartered in Tucson, Arizona, Mister Car Wash, Inc. (NASDAQ: MCW) operates over 500 locations and has the largest car wash subscription program in North America.
In all, Mister Car Wash delivered record-breaking results in 2024, driven by strong subscription growth and well-disciplined cost management.
“When I reflect on where our company was 10 years ago with 136 stores and $250 million in revenue, to where we stand today at over 500 stores and nearly $1 billion in revenue, I couldn’t be more energized about our future,” company chairman and CEO John Lai said on the Q4 earnings call.
“None of this would have been possible, without our incredible talented team, our people, our culture and our ability to continuously improve is what makes, Mister special.”
Mister’s impressive fourth quarter included net revenues increases of 9 percent to $251.2 million, up from $230.1 million in the fourth quarter of 2023; comparable-store sales increased 6 percent during the quarter; it added approximately 14,000 new net subscribers in the fourth quarter; and opened 14 new greenfield locations, relocated one, and closed two, bringing the total net number of sites to 514 as of Dec. 31.
For the year, Mister showed a net revenue increase of 7 percent over 2023; comparable-store sales increased 3 percent; it added approximately 46 thousand net new subscribers with membership up 2 percent over 2023; and it added 39 new greenfield locations.
Heading into 2025, Lai stressed the company is focused on expanding its footprint with 30 to 35 new stores, leveraging premium membership penetration, and maintaining steady growth.
“Over the next few years, we expect the industry to rationalize, and we are confident Mister will be well positioned to capitalize as market share and consolidation opportunities present themselves,” Lai said.
“Disciplined growth, solid execution and operational excellence to deliver an exceptional customer experience is what motivates us and drives our success, not growth at all costs.”
During the earnings call’s question and answer session, Lai confirmed pricing adjustments to its subscription model are planned for 2025, focusing on underpriced markets, and said Mister plans to triple its marketing spend compared to 2024.
Asked about any potential effect from the recent bankruptcy filing by Zips Car Wash, Lai said there appeared to be minimal overlap with affected locations but believes Mister can benefit from changes in the industry.
“Over time, this is our prediction that there will be market three, maybe on the high end, five dominant players in any one region. There will never be one person who owns a 100 percent market share, that’s not realistic,” Lai said. “And so just hanging on the three number, if there’s three strong players in every region, in some cases, more some cases, less. They will continue, and we expect to be part of that.
“Our prediction is that there’s going to be more consolidation over time and that some of the folks that were in this not to build an enduring brand but to hopefully monetize at some point, they’re now starting to ask themselves when is the right time to monetize.
“We think we’re perfectly positioned to capitalize on some of the opportunities that will present themselves.”
